South Africa’s National Union of Mineworkers, which represents about two thirds of gold miners in the country, will start a strike over pay tomorrow?
South Africa produced over 1,000 tonnes of gold in 1970 but production has fallen an incredible 75%, to below 250 tonnes in recent years . This collapse sees gold production at levels last seen in 1922. This has happened despite the massive technological advances of recent years, more intensive mining practices and a far greater availability of capital.
South Africa was throughout the 20th century and as recently as 1996, the world’s largest gold producer at almost 17 million ounces.
Should gold supplies be further hampered it may impact the already, very tight physical gold market.